Oil Taxation Manual

PRT: penalties - incorrect statement of payment on account

PRTA80\S1(3B) applies OTA75\SCH2\PARA3 and OTA75\SCH2\PARA8 and OTA75\SCH2\PARA9 to the statement required by PRTA80\S1(1)(a). This would apply, for example, if the statement included expenditure which had not been claimed. Where the statement includes expenditure which has been claimed, but which was incorrectly claimed, either fraudulently or negligently, HMRC’s view is that the statement is incorrect, and that a penalty is due under OTA75\SCH2\PARA8(2)(a)(i). The maximum amount of the penalty is £50 plus the difference, or, in the case of fraud, twice the difference, between the tax shown in the statement and the tax which would have been shown in the statement in the absence of the incorrect claim.

Where the statement by a participator in an oilfield who is also the responsible person includes expenditure incorrectly claimed, either fraudulently or negligently, under OTA75\SCH5, the statement is incorrect in respect of the participator’s share of that claim, and a penalty is due.

Where the statement by a participator in an oilfield who is not the responsible person includes expenditure incorrectly claimed under OTA75\SCH5, the statement is incorrect in respect of the participator’s share of that claim, and a penalty will be due if the inclusion of that amount was either fraudulent or negligent.

Where the statement by a participator includes an incorrect amount of disposal receipts, tariff receipt, or an incorrect amount of tariff receipts allowance, the statement is incorrect, and a penalty will be due if the inclusion of that incorrect amount was either fraudulent or negligent.